Las Vegas Man Accused of Running $24 Million Crypto-Linked Ponzi Scheme

A Las Vegas man, Brent Kovar, has been charged by U.S. regulators for allegedly defrauding over 400 investors out of $24 million through a deceptive AI-driven cryptocurrency mining scheme. Kovar allegedly misled investors by promising lucrative, fixed returns of 15% to 30% annually, with a 100% money-back guarantee.
Fraudulent Scheme Promises Sky-High Returns
From late 2017 to July 2021, Kovar ran his fraudulent operation through a company he founded called Profit Connect, which he claimed was an AI-driven cryptocurrency mining firm that verified crypto transactions. Using a combination of a website, YouTube videos, and PowerPoint presentations, Kovar successfully attracted investors, assuring them that their investments were both secure and guaranteed, even claiming some were backed by the FDIC.
However, instead of mining cryptocurrency and verifying transactions as promised, Kovar reportedly used the funds to fund his lavish lifestyle. He allegedly used the investor money to purchase gifts for employees, buy a house for himself, and provide funds to earlier investors, mimicking the appearance of legitimate profits when in fact the returns were coming from new investor money.
The Charges
The U.S. Attorney’s Office for the District of Nevada has charged Kovar with 12 counts of wire fraud, three counts of mail fraud, and three counts of money laundering. If convicted, Kovar could face a maximum penalty of 330 years in prison and a fine of up to $4.5 million.
“Mr. Kovar allegedly stole victims’ hard-earned money by making false representations regarding his investment company,” stated the U.S. Attorney’s office, further adding that Kovar’s misleading tactics had lured investors into believing their money was secure in a company that was nothing more than a Ponzi scheme.
A Rising Tide of Crypto-Linked Fraud
Kovar’s alleged scheme is just one in a growing number of crypto-linked Ponzi schemes that have captured headlines in recent years. The rise of cryptocurrency has provided an enticing opportunity for fraudsters to exploit those looking to cash in on the digital asset boom.
On Jan. 27, 2025, Antonia Perez Hernandez, a promoter of the Forcount Ponzi scheme, pleaded guilty to conspiracy to commit wire fraud. She was sentenced to over two years in prison. In October 2024, an 86-year-old former California attorney was sentenced to five years probation and ordered to pay almost $14 million after admitting to running a multimillion-dollar crypto Ponzi scheme.
Meanwhile, the FBI’s Operation Level Up, which is dedicated to tackling crypto fraud, reported that it had saved potential victims an estimated $285 million between January 2024 and January 2025. This highlights the growing concern around crypto scams, with authorities stepping up efforts to crack down on fraudulent schemes targeting unsuspecting investors.
Conclusion
As the cryptocurrency market continues to mature, fraudulent schemes like Kovar’s serve as a reminder of the risks involved. With investors increasingly looking to digital assets for growth opportunities, it is more important than ever for them to conduct thorough research and remain vigilant against fraud. U.S. Authorities. are stepping up their efforts to root out crypto fraudsters, but the rise of Ponzi schemes in the crypto world underscores the need for greater oversight and awareness within the industry.
As for Kovar, the legal battle is just beginning, and if convicted, he will face substantial penalties for his role in deceiving hundreds of investors.
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